THE TRANSMISSION MECHANISM FROM THE INVESTMENT CLIMATE TO TECHNOLOGICAL MODERNISATION IN THE BUILDING MATERIALS INDUSTRY

This article develops a multi-stage mechanism linking the investment climate to technological modernisation in the building materials industry. The objective is to clarify the transmission chain from investment-climate conditions to firms' decisions, investment quality, technological change, and final outcomes. The methodology integrates institutional economics, real-options theory, research on financial constraints, the competition–innovation literature, and absorptive-capacity theory. Legal predictability, the cost of capital, competition, infrastructure, and firms' capacity to absorb knowledge are considered interdependent factors. The resulting framework comprises a four-stage transmission chain, three cross-cutting enabling blocks, and eight empirically testable hypotheses. Modernisation outcomes are assessed in terms of technology generation and adoption, energy and material efficiency, compliance with established standards, digital integration, and local linkages rather than capital expenditure alone. The effects of foreign investment are considered conditional on supplier linkages and firms' absorptive capacity. The proposed framework provides a basis for complementing the expansion of investment volumes with greater attention to investment quality and measurable technological outcomes.